US Ukraine Minerals Deal Signals Historic Economic Partnership

Ukraine and the United States have finalised a highly anticipated agreement to establish a joint minerals deal, marking a new chapter in their economic cooperation. This partnership is being hailed as a major step forward in securing Ukraine’s sovereignty, bolstering its economy, and ensuring continued support in its defence against Russia.

The deal, described as a “historic economic partnership” by US Treasury Secretary Scott Bessent, will create a United States-Ukraine Reconstruction Investment Fund. This fund is designed to support Ukraine’s recovery by generating revenues from new licences to extract critical materials, including oil and gas. While the United States will contribute to the fund, the Ukrainian government will retain full ownership and control over its natural resources.

The agreement was finalised following weeks of negotiations and some last-minute amendments requested by Ukrainian officials. Yulia Svyrydenko, Ukraine’s economy minister, emphasised the independence of her country in managing these assets. She assured stakeholders that Ukraine’s efforts to integrate further with the European Union would remain unaffected by the deal.

Ukraine holds approximately five per cent of the world’s critical raw materials, such as lithium, which is essential for modern technologies, particularly batteries. Despite these abundant resources, unlocking their full potential will require substantial investment, as key reserves remain untapped or are situated in Russian-occupied territories valued at approximately £280 billion.

This agreement aligns with Ukraine’s strategic interests for long-term economic stability and recovery. It also sends a clear message to other global players. As part of the partnership, Washington has emphasised that no entity involved in financing or supplying Russia’s wartime efforts will benefit from Ukraine’s reconstruction or resource development plans.

US support for Ukraine has been substantial since the onset of the conflict with Russia in 2022, providing about one-third of the weapons and military hardware used by the Ukrainian army. This deal is seen as a means to further solidify that partnership while encouraging international investment in Ukraine’s war-torn economy.

Prime Minister Denys Shmyhal expressed optimism about the agreement, calling it a good and equitable deal that ensures fair joint investments in Ukraine’s restoration. It is also hoped that the fund will attract broader financial backing from the United States, the European Union, and other allies committed to Ukraine’s fight for sovereignty and peace.